Recently, we called a trader of nonperforming loans who said quickly, “Can’t talk right now. Way too busy.” Later on we finally spoke and the message delivered was quite clear: the market for underperforming and nonperforming mortgages appears to be gathering steam. Sources tell us that Wells Fargo has a large package in the market as does Aurora Loan Services. Of course, Wells and Citigroup continue to unload product while other banks prefer – at least for now – to keep their problems in-house or super secret. But who knows? The constipated nature of the NPL market may finally be easing. Why? Answer: Investors are starting to believe that housing has bottomed which means the underlying collateral (homes) will not stay ultra cheap for too much longer. Then again, we’ve seen this ‘false positive’ before. But why does it feel real this time?